Wikipedia:WikiProject Trains/ICC valuations/State University Railroad

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STATE UNIVERSITY RAILROAD, FORMERLY CALLED CHAPEL HILL IRON MOUNTAIN RAILROAD COMPANY

INTRODUCTORY

The State University Railroad is a corporation of the State of North Carolina. Its corporate office is located in Raleigh, N. C., and its principal accounting office is located in Washington, D. C. It is controlled by the Southern through ownership of a majority of its outstanding capital stock.

The property of the State University Railroad was operated by The Richmond and Danville Rail Road Company or its receivers, from January 1, 1882, to June 30, 1894, as a proprietary line. On December 14, 1894, at the sale of assets of The Richmond and Danville Rail Road Company, control over $16,500 par value of capital stock of the State University Railroad, then owned by The Richmond and Danville Rail Road Company passed to the Richmond Terminal reorganization committee. This sale was incident to a plan whereby the State University Railroad and several other companies were subsequently reorganized into the Southern. When the above committee had liquidated its affairs this stock passed to the Southern along with certain other assets which remained in their hands.

On July 1, 1894, the Southern assumed charge of the property of the State University Railroad and began its operation as a proprietary line and in contemplation of acquiring the stock of the State University Railroad, in the manner as outlined above, the Southern has operated the property in this manner to date of valuation, without a formally executed agreement.

The financial information incorporated in this report affecting the period prior to June, 1896, was obtained from the legal and financial history compiled by the president of the Southern, the annual reports of The Richmond and Danville Rail Road Company to its stockholders, the minutes of the meetings of the board of directors of the State University Railroad, or from records of the Southern.

CORPORATE HISTORY

Incorporation of the State University Railroad was effected under the name of Chapel Hill Iron Mountain Railroad Company by a special act of North Carolina, ratified February 10, 1873. Nothing was done under the charter issued until 1879, when the enterprise was revived by changing the name to the State University Railroad Company as provided for in an act ratified March 4, 1879. The date of organization was April 12, 1879.

DEVELOPMENT OF FIXED PHYSICAL PROPERTY

The owned mileage, extending from University to Chapel Hill, N. C., a distance of 10.154 miles, was acquired by construction. Some time after the change of name of the company, work was commenced, apparently by the company's own forces, on a line of road, but before the grading was finished the funds gave out. On August 1, 1881, a contract was entered into with The Richmond and Danville Rail Road Company, whereby that company completed the construction and opened the road for operation on January 1, 1882.

HISTORY OF CORPORATE FINANCING